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Market Update

Fed Taper Worries Rise after Budget Deal

Author: Nichole Harper
Last Update: 11:05 AM ET December 11 2013

11:00 AM New York U.S. market indexes declined after a narrow budget deal was announced by bipartisan Congressional leaders. The deal sets spending limits and trims deficits but fails to revise debt limit and sets the stage for another showdown in February.

Stocks accelerated decline in New York trading after a budget deal announcement raised the prospect of Fed tapering and European markets trimmed gain in the afternoon.

Bipartisan Congressional leaders announced a budget deal that is likely to avert another shutdown, if approved by the House and the Senate.

The negotiated deal sets spending limit and cuts deficit but does not revise debt limit and set another showdown in February.

The negotiated deal would reduce automatic spending cuts by $60 billion over two years and will reduce deficit by at least $20 billion. The deal still needs to be approved by two chambers of Congress.

S&P 500 index declined 0.5% to 1,793.41 and Nasdaq Composite Index decreased 0.5% to 4,039.41.

In London trading, FTSE 100 index gained 0.4% or 28.48 to 6,552 and in Frankfurt the DAX index rose 0.2% or 29.04 to 9,143.

In Paris, CAC 40 index increased 0.8% or 34.95 to 4,126.

U.S. Stocks in Review

Costco Wholesale Corp (COST) declined 1% to $118.91 after the wholesale club operator reported less than expected quarterly earnings.

MasterCard Inc (MA) soared 4.6% to $797.25 after the payment processor announced a dividend hike of 83% and a 10-to-1 stock split. The company also plans to repurchase as much as $3.5 billion of stocks.

Holders of stock on Jan 9 are schedule to receive additional shares on Jan 21.

Visa Inc (V) soared 1.3% to $202.48

Discovery Communications Inc gained 74 cents to $85.91 on the speculation that the cable channel operator may bid for Scripps Networks Interactive, Inc. The combined company would have a market capitalization of about $43 billion.

Shares of Scripps Networks Interactive, Inc surged 7% to $80.62.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc